SWOT Analysis of BATA & Britannia

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Presented By :-

Aaditi Raut Ganesh Jondhale Mazhar Pathel Shahrukh Khan Sanchita Wackchaure Tejashree Naik

Acknowledgement

The present study has been benefited from many valuable feedbacks, creative guidance, indispensable suggestions and emboldened encouragement from my guide Mr. Akshay Pimple

We express our sincere thanks to his. He has provided research insight, valuable inspiring guidance and willing help during the research investigations. It was due to his unlimited patience, generous and painstaking help that this work could be completed.

We are grateful to the Director of RPIMS for giving me opportunity to study MMS course of this reputed University and submit this MMS project report as a part of this study.

We wish to extend our sincere thanks to Coordinator, for giving us timely guidance and support to complete this Project Report.

Introduction Of Britannia

Britannia is an Indian food-products corporation based in Kolkata, India. It is famous for its Britannia and Tiger brands of biscuit, which are popular throughout India. Britannia has an estimated 38% market share.

The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

The company was established in 1892, with an investment of Rs. 295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the company’s sales. The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign shareholder.

The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more.

Tiger, the mass market brand, realised $150.75 million in sales including exports to countries including the U.S. and Australia, or 20% of Britannia revenues in 2006.

In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone had violated its intellectual property

rights in the Tiger brand by registering and using Tiger in several countries without its consent. Britannia claimed the company found out that Danone had launched the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore, Pakistan and Egypt, when it attempted to register the Tiger trademark in some of these countries in 2004 list it was initially reported in December 2006 that agreement had been reached, it was reported in September 2007 that a solution remained elusive. In the meantime since Danone's biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia was renamed Kraft Tiger Biscuits in September 2008.

Britannia initiated legal action against Danone in Singapore in September 2007. The dispute was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and Danone paying Rs 220 million to utilise the brand.

SWOT Analysis of Britannia

Strength :-

1.Around 120 years in the industry

2.India’s most trusted brand with strong brand recall

3. Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk, butter, cheese, etc.

4. Strong distribution network ensuring proper availability of the products even in the remotest of areas

5.Major share in biscuits industry

6.Marketing and advertising efficiency

7. Innovative products for health conscious people like oats and porridge, Nutri Choice biscuits for diabetes patients, Vita Marie Gold, etc.

8. Strong presence in rural markets

9. Products for all food and snacks segments 10. Britannia is the 2nd most trusted brand

11. Provides good quality of biscuits cakes

12. Products range from Re1 to Rs 500

13. Easily available in various forms

14. Excellent supply of products whenever required

15. Widely accepted in all generations

Weakness :-

1.Lower market share in dairy segment

2.Heavy expenditure on advertising and marketing

3.Similar products produced by many companies means high brand switching

4.Quantity of biscuits is less compare to its competitors, as they concentrate more on quality.

5. Similar kind of Britannia product available in the market made by its competitors

Opportunity :-

1.Increase in purchasing power of people in India.

2.Increase its share in the dairy industry.

3.Product line extension.

4.Expansion in other countries.

5. With the opening of new offices in the different areas scope of sale of products will increase.

6. Generate employment opportunity.

Threats :-

1. Companies like Biskfirm, Parle , Sunfeast entering into this segment of market

2. Providing products to the offices at lesser rates by offering heavy discounting

3. Lower price offering competitors

4. Local dairies and bakeries

5. Inflation can cause fall in sales and revenue

6. Rise in cost of raw materials

Introduction Of Bata :-

Bata Shoes is a large, family-owned shoe company established in Zlín, modern-day Czech Republic and currently headquartered in Lausanne, Switzerland. Bata operates three business units worldwide – Bata Metro Markets, Bata Emerging Markets and Bata Branded Business. It has a retail presence in over 70 countries and production facilities in 27 countries. In its history the company has sold more than 14 billion pairs of shoes.

Foundation by Tomáš Baťa

The company was founded in 1894 in Zlín (then in the Austro-Hungarian Empire, today in the Czech Republic) by Tomáš Baťa, whose family had been cobblers for generations. A large order from the army for military footwear, and rising demand for them during World War I, started the company's rapid growth and a small manufacturing company grew into a modern industrial concern, one of the first mass producers of shoes.

Tomáš Baťa was recognised for his social consciousness: he established housing, cinemas and advancement programmes for his employees. The phrase "work collectively, live individually" is one of his sayings. Baťa recognised the potential of large-scale production, and was often called the "Henry Ford of Eastern Europe". He saw technology as a means of progress, and wanted to make the shoes as cheaply as possible so that the greatest number of people could buy them.

In 1932, at the age of 56, Tomáš died in a plane crash at Zlín Airport (attempting to take off under bad weather conditions) and his half-brother Jan Antonín Baťa became head of the company.

At the time of Tomáš's death, the Baťa company employed 16,560 people, maintained 1,645 shops and 25 enterprises. Most of what Tomáš had built was centralised in Bohemia and Moravia (15,770 employees, 1,500 shops, 25 enterprises) and Slovakia (250 employees and 2 enterprises).

SWOT Analysis Of Bata

Strength :-

1. Worldwide Presence in over 70 countries and production facilities in 27 countries

2. Benefit received from link to the international organization for back-office systems, product innovations and sourcing.

3. Found in all the metros, mini-metros and towns

4. Sells through over 1200 retail stores in India and 5000 stores worldwide

5. Employs more than 6800 people in India and 40000 people world over and over 30,000 dealers

6. Excellent advertising and brand presence

7. Brand Image

8. Reasonable quality at lower reasonable price

9. Diversity with ranges in running, training, court, basketball, football and Outdoor

10. Footwear for the entire family

11. Financially Strong

12. Conveniently accessible outlets in various parts of the country

13. Targeting all income segments

14. Provide training for managers and employees

15. Nationwide retail network

Weakness :-

1. High cost for brand protection

2. Intense competition in the footwear segment means limited scope to overhaul market share

3. No continuity of leadership

4. In 2001, 5% decrease innet sales

5. No proper planning regarding Advertisement

6. No variety in Fashionable shoes

Opportunity :-

1. People now look towards buying footwear as a blend of fashion and comfort, so now has an increasing market size

2. Bata has an opportunity to create a separate division for tackling the rural markets in emerging nations

3. Global expansion in the premium footwear section

4. E-Commerce

5. Acquired, Partnership with small players

6. Entering new segments of Markets

7. Capturing Market whereon other potential competitor exists

8. Innovative Products

9. New mediums for advertisements

Threats :-

1. Intense Competition from other leading footwear brands

2. Commoditization if fashion footwear not differentiated well

3. Customer Dissatisfaction 4. Price wars with competitors

5. Competitors

6.Political Instability

7.Economic Threat

8. Changing in consumer preferences.

Conclusion

We can say that Britannia is one of the most diversified brands in food industry. If it expands its products by manufacturing unique novel products it can attain even higher position in the market since it is privileged with the strong marketing network over the entire country and about Bata, we can say that it has worldwide presence but they should global expand in the premium footwear section.